Portugal › Strategies › Long-Term Rental Reduction
Long-Term Rental Reduction
By Taxpert Editorial · Last reviewed: 26 April 2026
- Legal basis
- Art. 72(2)–(5) CIRS
- Benefit key
- rentalDuration
What it does
Cat. F rental income is taxed at a flat 25% by default, but the rate drops as contract duration increases:
- 2–5 years: 25%
- 5–10 years: 15%
- 10–20 years: 10%
- > 20 years: 5%
Renewal bonuses reduce the rate further by 2% per renewal (max 5 renewals, floor 5%).
When this saves money
Whenever you have rental income on a contract longer than 5 years.
Related
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